Chemical Financial Corp. in Midland, Mich., said Monday that its second-quarter profit dropped 76% from a year earlier because of a higher provision for loan losses and higher deposit insurance premiums.
The $4 billion-asset company made $2.3 million, or 10 cents a share.
It provisioned $15.2 million, up 133%.
Nonperforming assets increased 63%, to $142 million, or 3.57% of total assets.
Nonperformers were 4.18% of total loans, up from 2.52% a year earlier and 3.56% at the end of the first quarter.
Deposit insurance cost the company $3.1 million, compared with $200,000 a year earlier, as the Federal Deposit Insurance Corp. increased fees for banks to replenish the deposit insurance fund.
